rating is not a new phenomenon in history; it is as old as a man himself. The
payment of tax was originated as man learnt to live together in an organized
community. In Africa society for instance, grown up males are often
participating in a communal labor to maintain the path way leading to village,
farm kinds, construction of roads, public square.
view of the above historical facts, Abeokuta North Local Government Area is
been involved in the course of rating exercise. This was backed up by the
tenement rate edict of 1995, an edict that makes provision for the levying and
collection of tenement rate on properties in Ogun State.
The effective year that the local government under study started the exercise
was 1996, while they did re-assessment in 1995, up till date.
local government in responsible for collection of the tenement rate but they
are proposing to give it to a quality estate surveyor and valuers who is
capable to collect the rates.
study is meant to confirm the challenges of property rating within the period
of 1996 till date as well as to evaluate some of the benefits and problems
confronting the success of rating exercise and the importance of property
rating which make it serves as a durable source of revenue to the local
TABLE OF CONTENTS
of the study
of the study
of the study
background of property rating in Nigeria
of rating assessment
of property tax
types of property
rate as a source of revenue generation
o the study
of the study
for the study
for data collection
Procedure for the administration of the
for the collection of data
for data analysis
INTERPRETATION AND ANALYSIS OF DATA
4.2 Analysis of data
4.3 Analysis of questionnaire
4.4 Interpretation of data
CONCLUSION AND RECOMMENDATION
is a form of tax levied on real property and it is normally charged at local
level for raising the revenue to carry out specific developmental projects. These
rates are levied annually on owners or occupiers of landed property. It is
charged on the annual value of occupation of the tenement and should reflect
the income earning capacity of the built up landed property.
rating system has its origin in the Poor Relief Act, 1601 generally referred to
in Britain as “the statute
This system inherited from Britain in 19th century has been
recognized as a potentially rich source of raising fund within a Local
Government Area for the purpose of providing and maintaining essential services
and amenities in the rating area – such as roads, market squares, motor parks,
communal halls are maintained through communal efforts. Individual in the
community contribute their income and services for the up keep in their leaders’
is the present day made of living and modernization that brought about the
present sophistication and form of its application and collection. The local government
now takes some of the roles formerly played by the Obas, Obis or Emirs which
are presently more complicated like provision of electricity, schools, roads,
clinics, refuse proposal services etc.
first real attempt to property rating was through the federal government
guideline for local government reform of August, 1976. This document was
designed to give guidelines on the structure, finance and administration of
local government in the federation. The document introduced a pattern of rating
law for the entire country and since then, all estate government have based
their Rating Edict or Laws on it with very little modification. If is important
to know that the major principles of the rating system in Nigeria is to
defray the Local Government expenses. For example, that of Ogun state was
called Tenement Rate Edict of 1995, where property types were zoned and
appropriate unit was adopted. Thus the x – ray of the system in Nigeria was
that of Tenement Rating, where value of the property for rating purpose is
ascertained by a qualified estate surveyors and valuers and a percentage of the
property is multiplied by a rate Nairrage to be adopted by the Rating
Rating is a viable or stable source of revenue generation, though 70 – 80% of
the total revenue to the local Government. In Nigeria is from the federal
This Rating is a way of
broadening the financial base of Local Government to provide necessary
facilities for its subject.
Other source through
which the Local Government can raise funds are, insurance of death and birth
certificate, approval of plans, revenue from motor parks and market, insurance
of license etc.
The problem associated
with rate collection cannot be underestimated. That is why many Local Governments
have not being embarking on the implementation.
It is important to say
that rating can only be effective when certain conditions such as street
numbering, culture, qualified personnel, population etc have to be taken into
consideration. Many Rating Authorities did not consider these that is why
collection of rate is very tedious.
1.2 AIM AND
The aim of this
study is to examine the challenges associated with Property Rating in Abeokuta
North Local Government of Ogun State.
identify the rateable hereditament in the case study.
examine the process of assessment of reteable properties within the case study.
evaluate level of awareness of property rating by general public especially in
the study area.
identify the challenges of property in the study area.
recommended possible solution to problem, the Local Government is facing as a
result of rating exercise.
OF THE STUDY
shall be of immeasurable importance to the case study in particular and other
local government area in Nigeria,
because the research will provide possible solution to the local government
research will also be useful to determine the effectiveness of the rate
collection in Nigeria.
OF THE STUDY
The study covers
Abeokuta North Rating Authority. The data for this project was based on the
information collected from the following.
Olubode and company and Muri-Adi and associate (Estate firms)
North Local Government (The Local Government under study). The study will
covers the amount realized from property rating since 2007 – 2011 in the Local
– availability of some important respondents as at the time of visits.
availability of relevant textbook in the library.
constraint – Money sometimes, delay in carrying out some research.
time and stress involved in convincing respondents on the importance of the
Local Government has its headquarters at Akomoje in the Iberekodo Area of Abeokuta Ogun State
capital. The Local Government first came into existence in 1981, as Abeokuta
South Local Government the same year to make up the defunct Abeokuta Local
Government it however re – emerged again on 27th September, 1991
when the federal government moved closer to the people at the grassroots.
local government share common boundaries with the Odeda Local Government –
North, Ewekoro local government – south, Abeokuta
south local government – East, Yewa North local government – West.
rock is one of the most outstanding historical and socio – cultural landmarks
in the Local Government Area and Abeokuta
in general. The rock is situated in Abeokuta
between Ikija and Ikehreku. It is 137 metres above the sea level. The rock is a
massive outcrop of granite rock of primitive formation from which the state
capital derives its name “Abeokuta”
meaning under the rock. It served as a refuge for solders during the old Egba
inter – tribal wars. Apart from the fact it is a symbol of faith, unity and
strength it remains sacred in the history of Egba land.
North Local Government Area has a projected population (in 1994) of about
200,000 people more than 90% of the area is rural, although more than 75% of
people live in the urban area of the Local Government.
as at 2006 census, the population of Abeokuta North Local Government was 201,
329 people with the area of 808km2. The Local Government includes
the Oyan Dam, an important source of water to the cities of Lagos
local government has 77 public primary schools and 14 secondary schools with 16
– Is the right that one has in land or goods to the exclusion of all others
rights gained from the ownership of wealth.
Rating – This is a form of tax, levied on real property and it is normally
charged at local level for raising the required revenue to carryout specific
development project. This tax is aimed at promoting the total well being of
inhabitants of the local community.
Nairrage – This is the rate in the naira force, in the rating area where
the hereditament is located. Such rate is often fixed periodically after
considering the financial needs of the rating authority.
value – This means the amount of money which may be obtained for an
interest at a particular time from those individuals who are able and willing
to purchase it.
Value: This implies “the rent at which any tenement or hereditament might
reasonably be expected to let in the open market irrespective of the letting
arrangement of the landlord and tenant”.
Sic Stantibus: It is most basic principle in rating it explained that all hereditaments
must be valued as they exist as at the time when the rate is being made (i.e.
the property to value must be assed in the condition, state and circumstance
existing at the time of assessment.
Tenancy: This refers to all potential occupiers and actual occupiers as
possible yearly tenants thus; the facts that a property owner occupier is
Value: It is defined in section 19(6) of General Act of 1967, as “the rent
at which a hereditament might reasonable be expected to led from year to year
if the tenant undertook to pay all usual tenant rates and taxes and landlord
undertook to bear the cost of repairs and insurance and other expense if any
necessary to maintain the hereditament in a state to command the rent”.